Taiwan pursues 3 goals in tariff talks with US

台灣在與美國的關稅談判中追求三個目標

TAIPEI (Taiwan News) — Premier Cho Jung-tai (卓榮泰) said Monday that Taiwan is pursuing three goals in its ongoing tariff negotiations with the US.

Cho told the legislature that the Trump administration’s new global tariff rate took effect on Aug. 7, per CNA. He said that since April, discussions between Taipei and Washington had lowered the planned tariff from 32% to a provisional 20% on top of the base rate.

The premier outlined three priorities for future talks: securing fairer tariff rates for Taiwan, ensuring a reasonable process and outcome under Section 232 of the Trade Expansion Act of 1962, and preventing overlapping tariffs. He noted that some products — including steel, auto parts, pharmaceuticals, and semiconductors — are already excluded, with further exemptions possible as talks continue.

After the tariff rate was reduced on July 30, the Cabinet asked think tanks to update its April impact assessment. The revised figures showed the projected effects on exports, output, GDP, and employment were cut roughly in half.

Sectors most affected include industrial goods such as hand tools, machine tools, plumbing hardware, heavy electrical equipment, and plastics, along with agricultural products like orchids, edamame, and mahi-mahi. Cho said the government is working with each sector to identify needs and will provide support through a special “resilience” budget.

Since April, the Ministry of Labor has visited industry groups to track the effects. As of mid-August, 191 companies and 3,934 workers were on reduced hours due to economic conditions, with 73 firms and 2,388 workers directly affected by tariffs.

The Cabinet has proposed “a special act to strengthen economic, social, and homeland security resilience in response to global challenges,” along with a special budget. On Aug. 14, draft amendments were submitted reserving an additional NT$20 billion (US$656 million) to support the manufacturing sector.

Cho said that while no final agreement has been reached, technical talks on tariffs, non-tariff barriers, trade facilitation, and supply chain resilience are largely complete. The final step will be reaching an overarching deal.

He added that progress has been slowed because Taiwan had the sixth-largest trade deficit with the US in 2024, at US$73.9 billion — 90% of which came from semiconductors, ICT products, and electronic components. That imbalance triggered investigations under Section 232, complicating the negotiations.

Once an agreement is finalized, Cho said, it will be submitted to the Legislative Yuan for deliberation and approval.